Alexandria, Louisiana is known for its captivating natural beauty and informative cultural art museums. Although the city is thriving with tourism, the locals may not be in the same boat. Reports indicate that the median household income in Alexandra, Louisiana is $43,000 a year. According to CNBC, for families of four to live comfortably in the state of Louisiana, they need to have a household income of at least $62,000. That is $19,000 more than the average household in Alexandria. As a result, many Louisiana residents find it challenging to make rent payments and stay on top of their monthly expenses.
When financial hardships arise, borrowers are presented with several financial options to consider. Some may be able to borrow from family, and some may be able to rely on their financial reserves. Unfortunately, most borrowers, are not able to rely on family or their savings to provide financial relief. Due to a lack of resources, borrowers begin to navigate toward alternative sources of financial assistance.
Title loans seem to be fitting for borrowers that need emergency funds but may have been turned down for other loan options due to their financial past. Title loans allow borrowers to leverage their vehicle as collateral in exchange for immediate financial relief.1 If you have a paid-off or close to paid-off vehicle, you may want to consider applying for title loans in Alexandria, Louisiana!
What Should I Know Before Applying for a Title Loan in Alexandria, Louisiana?
Title loans in Alexandria, Louisiana can provide financial assistance for those experiencing financial hardship. Traditional loans analyze a borrower’s debt-to-income ratio, credit utilization, past bankruptcies, evictions, and credit scores. Borrowers who have compromising financial records may feel hesitant to take out a loan. Often, approval for title loans does not primarily rely on a borrower’s financial background.1 Those with less than stellar credit are still encouraged to apply.1
If a borrower is approved for a title loan, a lien will be placed on the title of the vehicle. The borrower will discuss the terms of the loan and decide on a repayment plan. The repayment process of a title loan is comprised of two main factors:
- The Loan – This is the amount of money borrowed. Once you are approved, you will have access to your emergency funds through a payment method of your choice. Title loans serviced by LoanMart are required to be paid back in monthly installments. Typically, for most title loans, these installments could be anywhere from a few months to a few years. However, when repaying a loan, borrowers will be responsible for paying back the full loan amount, plus interest.
- The Interest Rate – Did you know there is a price for borrowing money from a bank or lender? When an individual is paying off a loan, they are also paying for the cost of taking out the loan. Interest rates are a percentage of the loan amount. Some borrowers have 20% interest rates and others will only have 10%. Typically, the percentage depends on the borrower’s current financial standing. However, most qualified borrowers through LoanMart can access competitive interest rates.1
Once a borrower pays off the loan and its interest in full, the lien is removed from the vehicle title. A borrower may be able to apply for a second title loan on the same vehicle once the vehicle is in good standing. Failure to make payments on time may result in less than desirable circumstances for the borrower.
Most individuals use their vehicles to commute to work and navigate through their community. If a borrower fails to make their loan repayments, the vehicle could potentially be repossessed, as the title loan lender will have ownership rights per the agreed upon contract. This is a last-case scenario that can potentially be avoided, however.
What are the Requirements for a Title Loan in Alexandria, Louisiana?
Most individuals looking to take out a loan may potentially qualify for a title loan.1 The initial requirements can be simpler than you think.1 There are three basic requirements an individual must meet if they are interested in taking out a title loan.1 Below are the minimum requirements:
- The borrower must be at least 18 years of age or older. In the United States, 18 years is considered the official age of adulthood and financial responsibility.
- The vehicle title must be in the borrower’s name at the time of inquiry. So, if you were gifted a car by a relative, or purchased a vehicle from an individual, make sure the title is in your name. If the title is not in your name you can request a vehicle title transfer at your local OMV, or Office of Motor Vehicles.
- The borrower must be able to provide proof of income. The borrower’s ability to repay their title loan is one of the determining factors of loan approval. Some individuals that are interested in receiving a title loan may feel discouraged if they are not currently working a 9 to 5 job. LoanMart understands that there are more ways to earn a living that fall outside of the traditional scope of the workforce. Some borrowers may have their own business, while others may collect disability or other government-issued assistance.
Below are a few ways to provide proof of alternative income:
- Bank Statements
- Disability Income Letters or Statements
- Pension Income
- Child Support or Alimony
- Settlement Income
- Annuity Payments or Retirement Income
With title loans in Alexandria, Louisiana serviced by LoanMart, you can expect an inquiry process with simple requirements!1 The entire approval process was streamlined and designed with financial emergencies in mind.3
Who Can Meet the Requirements for a Title Loan in Alexandria, Louisiana?
Individuals who meet the listed requirements and have positive equity in their vehicle can often qualify for a title loan.1 Remember: title loans are beneficial because they allow a borrower to use their car’s title as collateral in exchange for emergency funds. Since collateral is used to secure the cash, a car without value cannot be used.
The value of a borrower’s vehicle is paramount when it comes to meeting the loan requirements. Positive equity is when a borrower’s car is worth more than the amount they still owe on it. For example, if a borrower owes less than the market value of the car, the borrower would have positive equity in the vehicle. Typically, the larger the equity in a car, the greater the loan amount can be through a title loan.1
Borrowers who require immediate assistance also fall under the umbrella of those who may meet title loan requirements.1 The purpose of title loans is to provide financial relief to those who may not have other options. So, those experiencing financial shortcomings could be excellent candidates for title loans.1
Below are some of the hardships title loans can potentially help with:
- Home Repair – Thunderstorms are known to plague cities in Louisiana. As a result, several homes suffer. Shutters are in disarray. Gutters are hanging off the roof, and trees are fallen through windows. Receiving a title loan can help with some of the home repairs.
- Bail Money – Title loans can potentially help families put up bail for loved ones in jail.
- Medical Expenses – In communities with minimal healthy food options, (and in some cases contaminated drinking water) medical expenses are on the rise. Medical expenses such as hospital bills, surgery costs, and medication can leave those affected in a financial deficit. Receiving a title loan may help with these medical costs.
- Daily Spending – After bills are paid, you may not have a surplus of money to purchase quality food, or even provide basic toiletries for your household. Receiving a title loan could help eliminate some of the financial stress associated with day-to-day necessities.
- Rent Payments – Rent has reportedly gone up every year. Sometimes, borrowers’ salaries do not increase to accommodate the rent spikes they encounter. Several households in Alexandria, Louisiana struggle to make timely rent payments. Housing insecurity is an unfortunate and uneasy circumstance to be in. Borrowers who qualify for title loans are welcome to use their emergency funds for rent payments.
How Much Can I Get When Applying for a Title Loan in Louisiana?
Title loans are often considered to be midsized loans. Typically, they range from $1,000 to $10,000 or more, depending on the borrower’s state, vehicle, and income.
The amount of money a borrower may be approved for depends on the quality of their vehicle, and the amount of equity they have in said vehicle. It is important to know how the value of a vehicle can potentially grant a borrower more money.1 The more valuable a piece of collateral, the more a borrower can potentially receive through a car title loan if they have the right income to support it.1 So, what determines a vehicle’s value?
- Market Value – The market value of a vehicle is partially determined by how much a consumer is willing to pay a dealer for it. Below are a few components that add to a car’s market value.
- Make and Model – Popular vehicles are often in high demand on the market, regardless of the year it was manufactured. This is because every year, a borrower wants to have a reliable car. Some reliable cars include: Toyota Camry, Ford F-series, Nissan Altima, and Chevy Impala. If you drive a popular vehicle, you may potentially receive more funding through a car title loan.1
- Year of Vehicle – Technology gets better as time progresses. Consumers understand that and often prefer a vehicle that is up to date with technology. Today’s consumer wants a car that provides a sense of relaxation as well as some form of luxury. Unfortunately, older vehicles cannot compete in the realm of technology. However, older vehicles can still qualify for a car title loan.1
- Current Vehicle Condition – Vehicles that require significant repair may not receive the maximum amount of funding from a title loan.
Borrowers traditionally are approved for a percentage of their vehicle’s value. The percentage can range from 25% to 75%. LoanMart has great tools to help you receive an estimate on how much you could potentially be approved for.1 Click here to use the title loan calculator.
Do I Need to Have Good Credit to Apply for a Title Loan in Louisiana?
Many lenders require borrowers in Alexandria, Louisiana to have a minimum of a 680 credit score. LoanMart understands that extenuating circumstances can prevent borrowers from having good credit. Often before borrowers decide to apply for a title loan, they have exhausted their credit limits and increased their credit utilization on their credit reports.
A borrower’s credit report is not a primary determinant when qualifying for a title loan.1 Even if you are not confident with where your credit is at, you may still qualify for a car title loan in Alexandria, Louisiana.1
How to Apply for Title Loans in Alexandria, Louisiana
Once you’ve done your research and weighed the pros and cons of applying for a title loan, you have decided that a title loan is a perfect fit for you.
Below are three easy steps to take if you want to begin the inquiry process with LoanMart:
Step 1: Inquire about the loan
There are a few ways a potential borrower can apply for a title loan. Borrowers can apply online, or call a loan agent at 855-277-4847. If this is your first time applying for a title loan, you are encouraged to call in, so that you may speak with a professional loan agent. Speaking to a loan agent may be able to solve some of the questions you may have. Below are a few common questions borrowers ask.
- What documents do I need to qualify for a title loan?
- Photo ID – This should be government-issued and must contain a photo of you. A driver’s license or passport will suffice.
- Proof of Address – Title loans are available to Louisiana residents. To prove your residency, you can provide a recent utility bill or a bank statement.
- Vehicle Title – The vehicle title should be in the borrower’s name at the time of inquiry. If it is not, contact a LoanMart agent at 855-277-4847 to see what your options are.
- Proof of Income – Send in a photo of a document that best illustrates your monthly income. This could be a bank statement, pay stub, or a form of alternative income.1
- Photos of the Vehicle
- Do I need a vehicle inspection when applying for a title loan?
- LoanMart allows borrowers to send in photos of their vehicles. A loan agent will perform a virtual inspection to determine their eligibility.
- Can I apply for a second title loan on the same vehicle?
- You will be able to apply for a second title loan on your vehicle once your first title loan is repaid in full.
Step 2: Send in Documents
Once you have completed inquiring about the title loan, you can determine if you wish to proceed. If you wish to continue with the official loan process, you will send in your documents as described in step one. A loan agent will then review your documents for verification.
Step 3: Get your Cash1
Once a loan agent receives your application and documents, they will determine your eligibility. If you are approved, you will discuss your preferred method of payment. It can be that simple to find out if you qualify for cash!